Bureau of Economic Analysis

Survey of Current Business

Table of Contents September 1996

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4.0.)

Real spending for pollution abatement and control (PAC)
increased 7.3 percent in 1994 after increasing 2.5 percent in 1993.
Spending increased for all major types; the largest increase was for air PAC (12.4 percent). Real spending for pollution
abatement (PA),
the largest component of PAC,
increased 7.6 percent in 1994.
Spending increased substantially across all major sectors of the economy; the
largest increase was for personal consumption PA (11.8 percent). During 1972–94,
real PAC
spending increased at an average annual rate of 3.6 percent. By
type, the fastest growth was in solid waste PAC spending (6.3 percent).

Regular features

Real GDP increased 4.8
percent in the second quarter of 1996 after increasing 2.0 percent in
the first quarter; the step-up was largely accounted for by an upturn in
inventory investment and a pickup in government spending. Corporate profits
increased $8.7 billion in
the second quarter after increasing $33.3 billion in the first. As a result of larger increases in receipts than in
expenditures, the Federal Government current deficit decreased $24.2 billion,
to $131.0 billion, and the State and
local government current surplus increased $10.0 billion, to $101.0 billion.

The current surplus of State and local governments decreased $4.7 billion, to $95.0 billion, in 1995.
Receipts decelerated slightly, reflecting decelerations in all components except
personal income taxes. Current expenditures accelerated, largely reflecting
accelerations in consumption expenditures and in transfer payments for medical
care. For 1996, available information
suggests an increase of about $8–$14
billion in the current surplus of State and local governments.

Revision of Annual State Personal Income. The results of a comprehensive
revision of the annual estimates of State personal income for 1969–95 will be presented in the October SURVEY.

U.S.
International Sales and Purchases of Private Services.
Detailed estimates of U.S.
cross-border services transactions in 1995 and of delivery of services through
affiliates in 1994 will be presented in the November SURVEY.
The estimates will incorporate results from BEA’s
first benchmark survey of international trade in financial services, which
covers 1994,
and preliminary results from BEA’s 1994 benchmark survey of U.S. direct investment
abroad.